Payroll giving is a valuable, long term source of donations, providing regular income to the charity.
Payroll Giving is a scheme run through HMRC and administered by Charities Trust on behalf of Midlands Air Ambulance Charity. It allows your employees to make simple, tax-effective donations to the charity.
Donations are deducted from gross pay – before tax is deducted. This gives immediate tax relief on donations and means it costs less for your employees to donate. – for example, payroll giving enables employees to give straight to the charity from their gross salary (before tax is deducted), and to receive immediate tax relief of up to £4 for every £10 donated.
If you pay your employees or pensioners through PAYE (as most UK companies do), you can set up a Payroll Giving scheme.
Payroll Giving is one of the easiest ways of improving your employee participations in fundraising for MAAC.
All you need to do is sign up to our standard Payroll Giving contract; your payroll department deducts the money direct from your employees’ pay and sends the information and donations to us each month.
On behalf of MAAC, The Charities Trust will do the rest, verifying and paying out to us twice a month.
Regular donations can be deducted either weekly or monthly.
The donation is taken from gross pay and before tax is deducted. A donation of £10.00 per month therefore will cost the donor just £8.00.
The table below highlights the benefits according to your employees’ tax rate:
Setting up a scheme is simple. We can help your payroll department to get the scheme up and running, and advise you on the best ways to promote it.
You can find everything you need to get your Midlands Air Ambulance Give As You Earn scheme started below:
FAQs on Payroll Giving
What is payroll giving?
Payroll giving is a tax effective way to donate to charity. This means that you make your donation straight from your salary, or occupational pension, before tax. The end result is that costs the individual up to 40% less. For example, if you donate £15, the actual cost to you will be £9 (based on a higher rate tax payer).
Why is it a good idea?
It is easy, effective and it costs you less! For a higher rate taxpayer, payroll giving is the ONLY way that a charity can automaticall receive all your tax on your charitable donation.
How can i sign up?
You can sign up by downloading the form now or by approaching your employer direct - your payroll department should have the form that you would need to fill in. If not, please see 'What does my employer need to do?' below
What does my employer need to do?
Implementing Payroll Giving is a simple and quick process. Your employer needs to register with an HM Revenue & Customs approved Payroll Giving Agency and have the facility to make pre-tax deductions on your payroll system.
If your employer is not signed up to a payroll giving agency, it is very easy for them to do so. Payroll Giving advisory agencies such as the Charities Trust would be able to talk your payroll team through the process, and your employer can read more about it on the HM Revenue and Customs website, which includes tips, success stories and reasons for your employer to set up a payroll giving scheme.
You complete a donation form which is passed to your payroll department and they set up a pre tax deduction from your salary. This deduction is sent to the payroll giving agency your employer is registered with and they send the donations on to the destination charities. Donations have to go through this channel to provide an audit trail for HMRC.
What if i want to change my donation?
Payroll Giving is a flexible scheme. Employees can change their donation amount, add new charities or cancel their donations when they wish.
What are the benefits of donating via payroll giving?
Payroll giving is easy, flexible and it costs you less. Payroll giving makes it easy to manage your donation - as the gift is deducted before tax, you never have to worry about paying it.
Your payroll gift is also extremely valuable to the Midlands Air Ambulance Charity. Your regular support means that we can plan long term projects. As payroll giving costs you less, it also means that our supporters can afford to give more, which makes a vital difference to saving lives.
Why not ask your employer if they will match your gift? Many do, and this helps you to have your say about which charities your company supports.